Simon’s feline token [CAT] experienced substantial growth on December 16th, witnessing an increase of 48.6% in a single day, with trading volume surging over tenfold. This surge indicated significant interest in purchasing the emerging meme token.
Despite reaching a new peak of $0.000068, CAT encountered resistance around the $0.000063 mark, where the bullish momentum weakened to defend the previous highs as a support level.
How Far Will Simon’s Feline Digital Currency Retrace?
In November, Simon’s feline digital currency broke through its three-month high range, only to retreat to the $0.00004 support level, marking a 75% decline. This support level was tested multiple times, triggering the formation of a new range that extended up to $0.000063.
The recent daily closure shattered the range limits, setting a strong bullish outlook for CAT in the days ahead. A temporary pullback in the last 24 hours could potentially see Simon’s feline digital currency retreat to local support levels at $0.000055 and $0.000052.
After being on a bearish trend, the daily RSI suddenly rose on Sunday, indicating a shift in sentiment. Concurrently, the OBV has demonstrated a consistent uptrend since late October, suggesting sustained buying pressure that could propel prices upwards in the following weeks.
Surge in Open Interest Reflects a Change in Sentiment
The significant spike in trading volume on December 16th was accompanied by a notable increase in Open Interest from $18 million to $54 million. Additionally, the funding rate rose moderately from 0.028 to 0.036.
Although this surge was not as significant as seen earlier in December, and the sentiment was less one-sided, further upward momentum can be expected after a short-term retracement towards $0.000055.
Disclaimer: The content provided should not be viewed as financial, investment, trading, or any other form of advice, but rather an expression of the author’s perspective.